The full form of CTC is Cost to the Company. The employee’s annual wage package is known as CTC. It displays the total net costs an employer incurs for a worker over a year. Nowadays, the majority of businesses give their salary as a CTC. The actual compensation of the employee is not indicated. It also includes the amenities offered to the person while working there. As shown in the equation below, CTC is explained.
CTC = Gross salary + other expenses + Incentives
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A Few Thoughts on CTC
- The employee’s annual wage package is known as CTC.
- The CTC shows an employer or organisation’s net expenses for a worker over a year. Recently, many businesses have started presenting their salary as a CTC.
- CTC does not indicate the employee’s actual wage.
- It includes the amenities offered to the employee while they were working there.